[vc_row full_width=”stretch_row” css=”.vc_custom_1531732107238{background-color: #fcc118 !important;}”][vc_column]

[/vc_column][/vc_row][vc_row css=”.vc_custom_1531730959461{border-bottom-width: 1px !important;background-color: #f9fafb !important;border-bottom-color: #eef3f7 !important;border-bottom-style: solid !important;}”][vc_column css=”.vc_custom_1531891416301{margin-bottom: 0px !important;}”][bsfp-cryptocurrency style=”widget-6″ align=”auto” columns=”2″ scheme=”light” coins=”top-x-coins” coins-count=”8″ coins-selected=”” currency=”USD” title=”Cryptocurrencies” show_title=”0″ icon=”” heading_color=”” heading_style=”default” bs-show-desktop=”1″ bs-show-tablet=”1″ bs-show-phone=”1″ css=”.vc_custom_1531730265600{margin-bottom: 0px !important;}” custom-css-class=”” custom-id=””][/vc_column][/vc_row]

Analyst says BTC’s value will continue rising based on people’s perception


👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

Marion Laboure, an analyst at Deutsche Bank Research and the author of Democratizing Finance, believes the value of Bitcoin (BTC) will continue going up depending on what people think it is worth.

It is relevant to consider the value of diamonds when talking about BTC, Laboure said during an interview. She pointed out that the price of diamonds has soared over the past 50 to 70 years, and the value increased due to communication around the gem.

She noted that the Tinkerbell effect, which describes things that are thought to exist only because people believe in them, plays a significant role in determining the value of BTC and other cryptos. To this end, Laboure believes it is difficult to specify the exact value of the flagship cryptocurrency.

Factors driving BTC’s growth

However, she believes four factors are responsible for pushing BTC’s price up and down over the years. The first aspect is psychology. Like in the case of diamonds, Laboure believes the price of BTC and other cryptos will rise depending on what people think it is worth.

The second factor is demand and supply. With BTC having a fixed cap of 21 million coins, she believes it will continue soaring as demand increases. At the moment, more than 90% of BTC’s supply is in circulation, meaning demand will increase exponentially.

Another aspect is regulation, which Laboure believes is coming soon. She pointed out that clear guidelines in the nascent asset class might help onboard more users. Regulators and lawmakers have previously called for the swift regulation of the crypto space, especially after TerraUSD (UST) and Terra (LUNA) imploded.

Finally, she spoke about volatility, noting that the crypto market has been volatile for many years and is unlikely to change soon. However, Laboure believes friendly regulations will help increase the crypto space’s liquidity, thus reducing volatility.

Laboure said financial literacy is also essential to a thriving crypto economy in her closing remarks. She pointed out that the market needs a lot of data and that people need to learn the differences between various crypto projects. Specifically, Laboure said it is crucial to distinguish BTC, the oldest and largest crypto by market cap, and new entrants.

Leave A Reply

Your email address will not be published.